If Stevens woke up this morning and decided he wanted to jawbone the Aussie down, congratulations to him on a job well done.
AUD/USD cut through bids at 0.8950 and is at the lowest since September 2. Technically, the Australian dollar is soft and is flirting with the 100-month moving average.
The technical level is at 0.8950 and we haven’t had a monthly close below it since March 2009. Earlier this year, AUD/USD briefly broke below the 100-mma but turned around and rallied nearly 800 pips.
AUDUSD monthly with 100-month moving avg
Further support doesn’t kick in until the August lows at 0.8893 and 0.8848.